BELGIUM/FILE: French President Nicolas Sarkozy says rising commodity prices threatening growth
Record ID:
722144
BELGIUM/FILE: French President Nicolas Sarkozy says rising commodity prices threatening growth
- Title: BELGIUM/FILE: French President Nicolas Sarkozy says rising commodity prices threatening growth
- Date: 15th June 2011
- Summary: BRUSSELS, BELGIUM (JUNE 14, 2011) (REUTERS) EXTERIOR OF EUROPEAN UNION CONFERENCE BUILDING WITH EU FLAGS
- Embargoed: 30th June 2011 13:00
- Keywords:
- Location: Spain, Belgium, Germany, Peru, Azerbaijan
- City:
- Country: Azerbaijan Belgium Peru Germany Spain
- Topics: International Relations,Economy,Politics
- Reuters ID: LVAHQTLIPH07UY8LB4VYER3QBQY
- Story Text: French President Nicolas Sarkozy called on Tuesday (June 14) for tighter controls on the speculators he blames for spiralling food and energy prices, warning that such rising costs threatened global economic growth.
''It was really hard to get back on the path of global growth. This global growth is being threatened by the rising cost of commodities and raw materials," Sarkozy, whose country holds the rotating G20 presidency, told a conference in Brussels.
Sarkozy's remarks are designed to rally European Union support for a regulatory crackdown on speculation in commodities ranging from oil to grain France is using its presidency of the G20 this year to try to tackle rising prices for basic commodities such as grain, which it says have triggered social unrest in North Africa and the Middle East and fuelled inflation elsewhere.
''The shortage of raw materials could lead to the paralysis of economic activity, the breaking up of our societies and wars of hunger,'' Sarkozy said.
But the French President faces a challenge in finding consensus among G20 countries on all of France's proposals, such as limiting daily price movements in commodities markets or the speculative positions individual investors can take.
Britain for example opposes plans to give financial watchdogs the power to limit trading positions they feel could push up the price of basic commodities.
Sarkozy said he wanted to extend regulating trade in raw materials derivatives.
''The extreme deregulation of financial markets brought the world on the brink of the abyss. A market without rules is no longer a market. What lead to a catastrophe for the financial markets, are we going to let it lead to the same catastrophe in the commodity markets?'' Sarkozy said.
Sarkozy added France would like to see a standardisation of derivatives and would encourage their listing on regulated markets or platform.
France will also suggest a minimum cash deposit for such each transaction, he said.
Some analysts predict that France's G20 push to curb commodity price rises is likely to end in a limited agreement to establish humanitarian food stocks in the world's poorest regions and increase transparency in commodities markets.
This could force traders to provide regulators with more information on their jealously guarded trading positions.
Last week the World Trade Organization warned that nations were succumbing to protectionism in the wake of the global financial crisis, limiting exports of key commodities and installing new import barriers. - Copyright Holder: REUTERS
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